Really Simple Currency Investing Creates More US Money

by Florida's #1 Mortgage Planner on November 29, 2007

Ok, as promised, here is what would have happened with your $10,000 Is Your House Unemployed? investment when converted back to today’s USD during the same time as my previous post’s housing comparison. 

For a quick overview, this chart is based on you simply converting $10,000 USD to another currency and switching it back to USD today.  There are numerous ways to add additional rates of return (safely) in those other currencies and you would be even further ahead.  It is also not adjusted for inflation.

Currency Used Worth Today (USD) Rate of Return (annualized)
Euro $15,732.74 8.59%
Aussie Dollar $15,353.15 8.11%
Japanese Yen $11,394.45 2.40%
New Zealand Dollar $15,609.41 8.43%
Norwegian Kroner $14,397.16 6.85%
South African Rand $14,157.64 6.53%
Swiss Franc $14,030.85 6.35%
British Pound $14,159.87 6.53%
Canadian Dollar $15,365.33 8.12%
Russian Ruble $12,882.26 4.71%

As you can see, a fairly good hedge against the devaluing of the USD, and your home is by investing overseas (or even next door).  Wouldn’t you like to have investment rates like those all the time, except for the Japanese Yen, of course.

I did this particular post for two reasons.  The first is that you must include international investments as part of your investing.  That should be crystal clear.

The other reason is that, with an open mind, it is easy to achieve far greater rates of return than your mortgage costs, so stop "focusing" on paying off your mortgage and get onto investing.  Delaying will only cost you more money.

Don’t have the money to invest?  Your mortgage may actually be able to help you by putting that idle equity to much better use.  Don’t rush out and do it though.  There are a lot of variables that play into a mortgage and investment plan and you need to find the right team of experts to make it work.

That being said, if you are thinking about how to "employ your house", then feel free to contact me (link in upper middle column).  I will help the best I can and, of course, if you are in Florida, I can work you through the entire process.

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